Last week may have signaled an early reason for Uber and gig economy companies to be thankful this holiday season. Courthouse News correspondent Nicholas Iovino reported from San Francisco:
Despite claims that Uber’s business model deprives California of tax dollars and makes it spend more on public assistance for low-paid workers, a federal judge signaled Thursday he will likely deny a request for an injunction that would force Uber to treat its drivers as employees.
“Harm to the public interest is a factor, but you have to go through several doors,” U.S. District Judge Edward Chen said in court Thursday.
Chen is presiding over one of the first labor class actions filed against Uber since California Gov. Gavin Newsom signed Assembly Bill 5 into law in September. The new state law, which takes effect Jan. 1, requires employers like Uber classify drivers as employees rather than independent contractors, making them eligible for benefits such as minimum wage, overtime, sick pay, expense reimbursement and workers’ compensation.